Cavalier Resources has cleared a key technical hurdle with Raptor Capital completing due diligence on the Crawford Gold Project, paving the way for binding $11 million stream finance negotiations. The updated Pre-Feasibility Study reinforces the project's strong economic potential.
- Raptor Capital completes technical due diligence on Crawford Stage 1 open pit
- Negotiations underway for US$11 million stream finance facility
- Revised 2025 Pre-Feasibility Study confirms robust project economics
- Native Title consultations and regulatory approvals ongoing
- Financing subject to binding agreement and customary conditions
Technical Due Diligence Milestone
Cavalier Resources Limited (ASX: CVR) has announced that Raptor Capital International Limited has satisfactorily completed its technical due diligence on the Stage 1 open pit at the Crawford Gold Project in Western Australia. This milestone validates the project's technical and commercial viability, a crucial step forward in securing the proposed US$11 million stream finance facility.
Raptor’s confirmation follows a detailed review of mining compliance, physical design, and capital estimates, reinforcing confidence in the project's development potential. Both parties are now focused on negotiating binding agreements to formalise the financing arrangement.
Robust Economics Backing Development
The announcement coincides with the release of a revised 2025 Pre-Feasibility Study (PFS) for the Crawford Gold Project. The updated study incorporates current gold prices and confirms the project's strong financial metrics, including a 580% internal rate of return (IRR) and a payback period of just nine months. Total capital expenditure is estimated at A$9.8 million, with a life-of-mine all-in sustaining cost (AISC) of A$1,793 per ounce, placing the project in the lower cost quartile.
Gold production is forecast at approximately 23,467 ounces recovered over an 18-month mine life, generating gross revenues exceeding A$103 million. These figures underscore the project's potential to deliver significant value once operational.
Ongoing Regulatory and Community Engagement
While technical and financial assessments progress positively, Cavalier continues to engage with traditional owners regarding Native Title consultations, a necessary step before mining approvals can be granted. The company has submitted all required mining compliance reports and works approvals applications, but these processes remain ongoing and could influence project timelines.
Raptor’s investment is contingent upon the execution of definitive binding documentation and customary conditions precedent, including regulatory approvals. Both parties acknowledge that while the term sheet is non-binding, the completion of due diligence marks a significant step toward finalising the financing.
Strategic Implications for Cavalier
The proposed stream finance facility from Raptor, a specialist in funding low-cost development stage gold projects, is designed to accelerate the Crawford Project’s path to production. Cavalier’s Executive Director and CEO, Daniel Tuffin, highlighted that the partnership not only validates the Stage 1 open pit asset but also enhances the company’s capacity to bring the project into production efficiently.
With a focus on establishing Crawford as a self-funded gold hub near Leonora, Cavalier is positioning itself to leverage its mature gold assets alongside its greenfield lithium-nickel-gold project at Ella’s Rock. The successful completion of technical due diligence and the robust PFS underpin a compelling development narrative for investors.
Bottom Line?
As Cavalier and Raptor move toward binding agreements, the next phase will test the project's ability to navigate regulatory hurdles and secure final financing.
Questions in the middle?
- When will binding agreements for the US$11 million stream finance be finalised?
- How might ongoing Native Title consultations impact the project’s development timeline?
- What are the risks if gold prices fluctuate significantly from current PFS assumptions?